Advanced Micro Devices (NASDAQ:AMD) Trading 6.6% Higher - What's Next?

Key Points

• AMD shares jumped 6.6% on Monday, reaching an intraday high of $572.50 and closing at $552.05, as trading volume remained heavy despite being below the daily average.
• Recent analyst commentary was mostly bullish: Goldman Sachs and Wells Fargo both raised price targets and reiterated positive ratings, citing strong AI demand, EPYC server CPU growth, and pricing upside.
• AMD also got a boost from business momentum and broader sector strength, including a new partnership with Turing for self-driving AI work and a chip-sector rally tied to renewed enthusiasm for AI semiconductors.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price traded up 6.6% on Monday . The stock traded as high as $572.50 and last traded at $552.05. Approximately 29,587,268 shares were traded during trading, a decline of 21% from the average daily volume of 37,501,375 shares. The stock had previously closed at $517.82.

Advanced Micro Devices News Summary

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Goldman Sachs raised its AMD price target and reiterated a Buy rating, boosting confidence that AI-related demand and server CPU growth can keep accelerating. AMD, Nvidia, Micron, Oracle, Dell, Intel, and More Stocks That Explain Today’s Market
• Positive Sentiment: Wells Fargo raised its AMD price target and kept an Overweight rating, citing strong EPYC server CPU demand and pricing upside. Wells Fargo Lifts PT on Advanced Micro Devices (AMD) – Here’s Why
• Positive Sentiment: AMD announced a partnership with Turing that expands its reach into self-driving technology, with Turing using AMD GPUs for AI training and AMD Ventures backing the startup. AMD Gains AI Customer as $600 Million Self-Driving Startup Adopts Its GPUs
• Neutral Sentiment: The broader chip rally is supporting AMD, as AI-related semiconductor stocks rebound and lift the sector overall. The AI Trade Is Off to a Hot Start This Week as Chip, Memory Stocks Surge
• Neutral Sentiment: Commentary suggesting AMD could narrow the gap with Nvidia is adding to upbeat sentiment, but this is more narrative-driven than a direct business update. Forget Nvidia: AMD Might Close the Gap Faster Than Anyone on Wall Street Expects

Analyst Upgrades and Downgrades

A number of research firms recently commented on AMD. HSBC downgraded Advanced Micro Devices from a "buy" rating to a "hold" rating and lifted their target price for the stock from $335.00 to $340.00 in a report on Monday, May 4th. UBS Group raised their target price on shares of Advanced Micro Devices from $455.00 to $670.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Stifel Nicolaus raised their target price on Advanced Micro Devices from $320.00 to $450.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. BTIG Research raised Advanced Micro Devices to a "buy" rating in a report on Wednesday, May 6th. Finally, Cantor Fitzgerald upped their price objective on Advanced Micro Devices from $500.00 to $700.00 and gave the stock an "overweight" rating in a research report on Monday, June 29th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $453.92.

Advanced Micro Devices Trading Up 6.6%

The company has a debt-to-equity ratio of 0.04, a current ratio of 2.72 and a quick ratio of 1.96. The firm has a market capitalization of $900.17 billion, a PE ratio of 181.00, a P/E/G ratio of 1.53 and a beta of 2.47. The company's fifty day simple moving average is $470.75 and its 200-day simple moving average is $308.01.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.29 by $0.08. The firm had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The company's revenue for the quarter was up 37.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.96 EPS. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.15 earnings per share for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 125,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $460.69, for a total value of $57,586,250.00. Following the completion of the transaction, the chief executive officer directly owned 2,896,899 shares of the company's stock, valued at approximately $1,334,572,400.31. This represents a 4.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 24,376 shares of the firm's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $444.39, for a total value of $10,832,450.64. Following the completion of the transaction, the executive vice president owned 105,222 shares in the company, valued at $46,759,604.58. The trade was a 18.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 374,739 shares of company stock valued at $161,135,671. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Hedge funds and other institutional investors have recently modified their holdings of the business. Joseph Group Capital Management acquired a new position in shares of Advanced Micro Devices during the 4th quarter worth approximately $25,000. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices during the fourth quarter worth approximately $27,000. Cornerstone Financial Management LLC purchased a new position in Advanced Micro Devices during the fourth quarter worth approximately $27,000. Basepoint Wealth LLC acquired a new position in Advanced Micro Devices during the fourth quarter worth $30,000. Finally, Graney & King LLC acquired a new position in Advanced Micro Devices during the first quarter worth $31,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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